GE 2014 Annual Report Download - page 54

34 GE 2014 FORM 10-K
MD&A SEGMENT OPERATIONS | POWER & WATER
FINANCIAL OVERVIEW
(Dollars in billions)
SEGMENT REVENUES & PROFIT SEGMENT PROFIT MARGIN
SEGMENT REVENUES & PROFIT WALK: COMMENTARY:
2014 – 2013 2014 – 2013
Segment revenues up $2.8 billion (11%);
Segment profit up $0.4 billion (7%) as a result of:
x The increase in revenues was driven by higher volume,
primarily higher equipment sales at PGP and
Renewables, partially offset by lower prices at PGP and
Renewables and the impact of a stronger U.S. dollar.
x The increase in profit was mainly due to the higher
volume at PGP and Renewables, and higher
productivity reflecting a 10% reduction in SG&A cost,
partially offset by negative business mix with equipment
revenue up 20% and lower prices.
Revenues Profit
2013 $ 24.7 $ 5.0
Volume 3.7 0.7
Price (0.4) (0.4)
Foreign Exchange (0.2) -
(Inflation)/Deflation N/A 0.1
Mix N/A (0.5)
Productivity N/A 0.7
Other (0.2) (0.2)
2014 $ 27.6 $ 5.4
2013 – 2012 2013 – 2012
Segment revenues down $3.6 billion (13%);
Segment profit down $0.4 billion (8%) as a result of:
x The decrease in revenues was driven by lower volume,
primarily equipment sales at PGP and Renewables, and
the impact of a stronger U.S. dollar. These decreases
were partially offset by higher prices and higher other
income related to a sale of assets.
x The decrease in profit was mainly due to lower volume,
primarily equipment sales at PGP and Renewables, and
lower productivity despite decreases in SG&A cost.
These decreases were partially offset by positive
business mix, the effects of deflation, higher prices and
higher other income.
Revenues Profit
2012 $ 28.3 $ 5.4
Volume (3.9) (0.7)
Price 0.2 0.2
Foreign Exchange (0.1) -
(Inflation)/Deflation N/A 0.2
Mix N/A 0.3
Productivity N/A (0.6)
Other 0.2 0.2
2013 $ 24.7 $ 5.0
  Revenue   Profit